Thursday, October 14, 2010

(BIZ) Gilat Satellite To Buy Wavestream For $130M Cash

"Israel-based Gilat Satellite Networks Ltd. said Wednesday it agreed to pay $130 million in cash to buy privately held solid state amplifier maker Wavestream Corp.

Gilat, a provider of services for satellite-based broadband communications networks, expects to close the purchase of the San Dimas, California-based company before the end of the year and sees the deal adding to its earnings.

Gilat anticipates completing the deal with cash on hand, but it may get limited financing to replenish its cash reserves. Upon closing, Wavestream is to be acquired without any cash or debt, Gilat said.

The company added that Wavestream is expected to generate revenue of about $70 million in 2010. Gilat posted total revenue of $228.1 million for 2009.

Gilat also said that as part of the deal Wavestream shareholders will earn up to $7 million over the next year if it reaches certain performance milestones." (source)

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